Gamble of the week: Get on par with this golf retailer

This unloved golf products retailer is experiencing low sales revenues due to the recession. But with a new chief executive, recent restructuring and a chance golf will become the next Olympic sport, this stock could be a winner, says Paul Hill.

While visiting friends recently I was asked what investors should be doing with their money. I suggested looking for unloved stocks with good recovery prospects and solid balance sheets. An example of just such a stock is Callaway, the golf products retailer.

Callaway sells top-notch golf equipment, such as clubs, balls and accessories, under the Callaway, Big Bertha, Ben Hogan and Top-Flite brands. Those are all names well known to the golfing fraternity, thanks to endorsements from professionals such as Phil Mickelson, Arnold Palmer and Graeme McDowell. Turnover is split roughly 50:50 between America and overseas, with the company's chief competitors being Nike, TaylorMade, Ping, Mizuno and Titleist.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.